McEwen Mining, a growing gold and silver producer in the Americas, has announced that it has entered an agreement to acquire a new gold asset, located in a world-famous gold mining area in Canada.
The mine complex is the Black Fox Complex, owned by Primero.
Primero has agreed to sell the complex and mine to McEwen Mining in a deal worth $35mn.
The Black Fox Complex, is a significant development project owned by Primero. the Black Fox deposit lies along the Destor Porcupine Fault Zone (“DPFZ”), a major, east-west trending, deep-seated, crustal fault zone.
The DPFZ and its numerous splays are associated with many past and current producing gold mines and gold deposits in the Porcupine Camp. The Stock and Aquarius gold deposits are located immediately west of Black Fox and the Holloway and Holt-McDermott Mines are located immediately to the east. Each of these deposits hosts approximately 800,000 to 1 million ounces of gold.
"The proposed transaction for the divestiture of Black Fox is consistent with our previously disclosed strategic review process to maximize value for shareholders," said Joseph Conway, President and Chief Executive Officer. "I would like to thank everyone at Black Fox for their commitment and dedication, and we wish them continued success as part of the McEwen team. We will continue to advance definitive documentation and work closely with the team at site to ensure a smooth transition."
“Buying the Black Fox Complex provides fantastic synergies with our recently acquired Timmins deposits. Our objective is to build a long-term production platform with a robust pipeline of production, development and exploration assets, all feeding into a single processing facility. This acquisition will add immediately to our gold production, but is just the beginning of a new chapter of growth for McEwen Mining,” said Rob McEwen, Chairman and Chief Owner.
“Black Fox comes with a talented operating team, an underground mine producing 50-60,000 ounces of gold in 2017, a processing facility with excess capacity, two future development opportunities, and excellent exploration potential. Combined with our existing portfolio of Timmins deposits, I believe this is a logical and potent combination.”